The impact of the war in Ukraine is becoming more and more prominent as prices continue to rise.
Cabinet has outlined a worst-case scenario in a briefing to ministers on how household gas and electricity may have to be rationed, according to a memo seen by the Irish Independent.
There were also warnings that public transport services could be cut if the energy crisis continued.
The Government has now decided to cut duty on petrol and diesel by 20c and 15c.
The confidential memo also mentioned that Ireland has already had to use some of its 90-day reserve of crude and refined oil due to demand.
The cost of gas, oil and electricity is set to skyrocket for all consumers due to the invasion as the market becomes volatile and Ireland struggles to obtain supplies.
Restrictions on supplies of natural gas, precious metals, raw materials and other valuable commodities may now be introduced.
Shortages of natural gas and C02 could affect food processing with significant implications for the domestic food supply and farmers’ pockets.
Fears of food shortages may come to fruition as increasing fuel costs hit the farming industry.
The invasion has exposed Ireland’s dependence on imported grain, meaning that fuel prices are now having a knock-on effect on the supply chain.
Almost 30 per cent of global grain comes from Ukraine and Russia, but with the ongoing war, farmers and workers have fled the regions to take up arms or evacuate, with several ports now shut.
The cost of wheat supplies have now hit record highs and has emphasised the lack of tillage farming in Ireland.
Tillage crops here have fallen by 20 per cent since 2008 after the EU confirmed milk quotas would be scrapped in 2015.
This led to a surge in dairy activity, and land formerly used for tillage went into milk production, which may have to change as farmers are encouraged to sew new crops.
The Cabinet was also warned about the potential of a cyber attack on RTÉ in retaliation for the economic sanctions imposed on Russia.
This included banning Russian state media from broadcasting across the EU and on social media platforms.
Arts Minister Catherine Martin said her department was liaising with RTÉ to ensure it could continue broadcasting in the event of a cyber attack.
The memo said RTÉ had built “resilience into their systems” to protect against attacks.
However, RTÉ has said it has introduced extra security controls to protect against hacking attempts, as it experiences attacks almost every day.
